Our Corporate Structuring lawyers at Al Tamimi & Company explores Operating as a training institution in Dubai and Abu Dhabi and provide updates
Nazanin Maghsoudlou Senior Associate, Corporate Structuring
Shaima Mahmoud Paralegal, Corporate Structuring
A modern and dynamic economy requires effective institutions for training and professional development.
Accordingly, the government of the UAE has introduced a number of rules and regulations that are designed to ensure the smooth licensing and operation of training institutions. These rules and regulations recognise that the requirements of the various sectors of the UAE economy will evolve over time.
In Dubai, training institutions are regulated by the Knowledge and Human Development Authority (“KHDA”) – regardless of whether those institutions are registered in Free Zones or in mainland Dubai. In addition to this, Executive Council Resolution No. 50 of 2015 (“Resolution 2015”) and Administrative Resolution No. 2 of 2018 (“Resolution 2018”) are widely seen as the main piece of legislation that govern training institutions in Dubai.
Meanwhile, the Abu Dhabi Centre for Technical and Vocational Education and Training (“ACTVET”) regulates technical and vocational educational institutions in that emirate and it also supervises the licensing of trainers and tutors. Furthermore, CEC Resolution No. 152 of 2015 (“CEC Resolution”) governs the licensing of training centres in Abu Dhabi.
It is to be noted that Resolution 2015 and Resolution 2018 apply to any person who conducts a training activity in Dubai.
By the same token, the CEC Resolution considers a training institution an institution which provides training on any type of technical and vocational education and training that can lead to obtaining a professional qualification.
Licensed training centres in both Dubai and Abu Dhabi are permitted to provide a wide range of training courses in accordance with the applicable rules and regulations. Order No. 1 of 2013 (“Order 2013”) of KHDA’s Board specifies the general approved areas of which training institutions are allowed to operate.
These include training in language, management development, computer sciences, fine arts, education support services, tutoring services, technical and occupational skills and child skills development. Order 2013 divides these general categories into sub-activities which more clearly relate to specific vocations.
In Abu Dhabi, ACTVET’s list of approved activities covers various categories such as 3D printing, artificial intelligence, engineering, banking & finance, languages, media, law, real estate, medical services and so on.
The incorporation process of a training institution in Dubai and Abu Dhabi are similar. It is necessary to satisfy the requirements of both the licensing authority (i.e. the Free Zone authority or the Department of Economic Development (“DED”) and KHDA/ACTVET).
The incorporation process of a training institution for both Emirates entails certain steps, which can be summarised as follows:
Obtaining the initial approval and trade name reservation from the licensing authority;
Applying for initial approval from KHDA/ACTVET;
Obtaining trade license from the licensing authority; and
Applying for issuance of a training institution license from KHDA/ACTVET.
Each of these steps require submission of necessary documents to the licensing authority as well as to KHDA/ACTVET.
Additional approvals may also be required from the relevant Emirate’s Municipality, the Department of Civil Defence and the Health Authority.
A key element to consider for training institutions is the premises to be used as the training centre. Resolution 2018 provides certain requirements for such premises. These requirements include; the location; compatibility with the training courses; compliance with applicable requirements in terms of construction; occupational health and safety; space of premises to be suitable with the number of learners; and study halls and classrooms to be appropriate for the type of training, considering the availability of teaching aids, laboratories and information technology resources on the premises.
Similarly, the CEC Resolution requires a training institution to have the proper premises in compliance with the applicable requirements.
Resolution 2018 specifies a number of conditions for the manager of a training institution, who is also subject to the approval of KHDA. These conditions relate to the legal capacity of the candidate, and his/her good conduct and reputation, as well as his/her qualification to manage and supervise a training institution.
The manager’s responsibilities include: supervising the technical and administrative staff; managing the affairs of learners such as enrolment; training and complaints; communicating with the KHDA and providing the authority with the necessary data and information; development of a quality assurance process; and ensuring compliance of the training institution with applicable regulations such as Resolution 2015 and Resolution 2018.
Furthermore, Resolution 2018 requires a training institution to notify the KHDA in case of vacancy of a manager position. Once a position becomes vacant, the notification should be made within 10 days and a new manager shall be appointed within 60 days. The new manager should also satisfy all the various requirements.
Managers of training institutions in Abu Dhabi are also subject to certain requirements. The CEC Resolution notes that ACTVET shall carry out an interview with the manager of a training institution to ensure his/her capabilities. This resolution sets out certain requirements, which can be summarised as follows:
to be available to work full time in the training institution;
to have a bachelor’s degree;
possession of qualifications that are compatible with the licensed training activity; and
at least three years of practical and managerial experience in relation to academic management or any other fields directly related to training.
Article 13 of the same resolution states that a training institution shall not be without a manager for a period exceeding three consecutive months, otherwise administrative penalties can be imposed. In the event of the termination of the service of the manager, his/her resignation, or his absence for a period exceeding one month, the training institution must inform ACTVET. The Institution must appoint a substitute who shall comply with the same conditions. The substitute shall remain in place until the return of the original manager or the appointment of a new manager.
Training institutions are required to obtain the prior and written approval of KHDA/ACTVET in order to launch any advertising /marketing campaign to promote their educational services.
As for existing training institutions, which already have proper permits in place, undertaking changes to certain components of permits requires the approval of KHDA/ ACTVET, as the case may be.
Resolution 2015 as well as the CEC Resolution indicate that fines can be imposed on training institutions due to violations of licensing and operational requirements.
Such violations include, but are not limited to:
Failure to comply with the terms of a permit;
Conducting a training activity not licensed in the permit;
Changing the details of the permit without obtaining prior written approval of KHDA;
Adding or taking lease of any new buildings or facilities or closing down buildings or facilities without obtaining the prior written approval; and
Failure to provide the equipment and supplies required for conducting a training activity or providing unfit equipment or supplies for the relevant purpose.
Changing the location of a training institution without obtaining the prior approval of ACTVET;
Appointing a member of the educational cadre without obtaining the prior approval of ACTVET;
Enabling unauthorised personnel in the training institution to perform teaching roles; and
Adding annex buildings next to the premises of a training institution, constructing new buildings, or making changes without obtaining ACTVET’s prior approval.
Both resolutions specify fines for violations by training institutions in the two emirates.
Providing education related activities in the UAE is regulated and requires prior approval and permits. Al Tamimi & Company can assist in setting up training institutions and advising on all the licensing requirements thereof.
For further information, please contact Nazanin Maghsoudlou or Omer Khan.
Published in August 2022
Illustration of Chanakya
